Category: Business Daily

Shareholders of Savannah Heights Limited, one of the founders of Savannah Cement, want the High Court to halt the delivery of judgment in a petition lodged by their former business partner, Benson Ndeta, challenging his prosecution for alleged Sh4.5 billion bank loan fraud.

Donald Kiboro Mwaura, John Gachanga Kaiganaine and Savannah Heights Ltd want the Constitutional and Human Rights Division to suspend the judgment scheduled for July 8, citing new evidence.

The trio were officials at the cement maker before it collapsed in 2022 under a Sh14 billion debt burden and its acquisition by a consortium of investors in 2025 through a newly registered entity, Savannah Cement 2025 Limited.

Mr Mwaura and Mr Kaiganaine say all parties should first address a pending commercial derivative suit over the governance of Savannah Cement and the approval of the disputed $35 million (Sh4.5 billion) bank loan.

In September 2025, the commercial court issued a ruling that classified some issues as “new and important evidence”, prompting it to set aside its earlier judgment and schedule a fresh one.

The application stems from a constitutional petition filed by Ndeta, former Savannah Cement chairman, seeking to stop his prosecution over accusations that he and co-accused Charles Hill Jr fraudulently secured the Absa Bank loan using forged corporate documents.

The applicants argue that the September 2025 ruling in the related commercial dispute was never canvassed by the parties before the court fixed a new judgment date.

“Given that there is now ‘new and important evidence’ that was previously not on record, it is only fair that the Interested Parties, and the Petitioner and respondents, should they so choose, address the court on the same,” the application says.

In a supporting affidavit, Mr Kaiganaine says the commercial ruling dealt only with whether Savannah Heights directors had received notice of meetings that approved the borrowing and did not determine whether fraud had occurred.

“There remains a question of possible fraud,” he says, adding that the parties should be allowed to explain “why the ruling… cannot be grounds for stopping the Petitioner’s prosecution.”

The affidavit says DCI investigations later recovered extensive banking and corporate records from Absa Bank, including loan offer letters, debentures, guarantees, subordination agreements, board resolutions, land charge documents and correspondence relating to the $35 million loan facility.

According to the applicants, investigators also obtained a corporate guarantee and board resolutions allegedly executed on behalf of Savannah Heights by Ndeta and Charles Hill Jr.

Mr Kaiganaine says Mr Charles Hill Jr “has never been a Director of Savannah Heights Limited” and contends the documents therefore raise “the question of possible fraud on the part of the Petitioner and Charles Hill Jr.”

The affidavit further states that the bank accepted the documents presented by Mr Ndeta when processing the facility.

It says the relationship manager recorded a statement with investigators “admitting that ABSA Bank Kenya Limited accepted the documents as delivered by the Petitioner, enabling ABSA Bank Kenya Limited to issue the facility.”

The applicants also complain they have not been supplied with witness statements and documentary exhibits in the criminal case despite being complainants and despite obtaining court orders directing disclosure.

“Despite the Petitioner having taken a plea, we were not supplied with the witness statements and documentary evidence that was to be relied on during the criminal trial,” Mr Kaiganaine says.

The criminal case accuses Mr Ndeta and Mr Hill of conspiring to obtain the $35 million facility by presenting allegedly forged corporate guarantees, indemnities and board resolutions to Absa Bank between 2017 and 2018. Both deny the charges.

Savannah Cement collapsed under heavy debt and its assets were acquired in 2025 after years of shareholder disputes, lender claims and protracted litigation over the company’s governance and borrowing.

The upward pressure on interest rates is expected to ease after progress in peace negotiations between the US and Iran pulled oil prices to a four-month low, allaying fears of prolonged high inflation.

Analysts say that the Central Bank of Kenya (CBK) now has a strong case to hold its rate unchanged in the next monetary policy meeting in August due to easing inflation, in the process capping the recent jump in short-term rates on government securities.

Since the war in Iran started on February 28, rates on the 91-day and 182-day Treasury bill have gone up by 1.4 and 1.2 percentage points to 8.83 percent and 8.96 percent respectively.

Bond buyers also demanded a return of 15.1 percent on a 25-year paper that was reopened last month, against its actual interest rate or coupon of 13.92 percent.

Investors demanded higher returns after inflation rose to 6.7 percent in May from 4.3 percent in February due to higher fuel prices. For investors in the government securities, higher inflation erodes the real returns from their assets, which come with a fixed annual interest rate.

The cost of living measure however dropped to 6.4 percent in June, with a further decline expected once fuel and food prices come down in the coming weeks.

Current spike in inflation

On Tuesday, Brent crude was trading at $72.78 a barrel, a price last seen on February 27. The price of oil had risen to highs of $120 a barrel at the peak of hostilities in Iran in March.

‘Overall, we project a lower inflation path in the near-term. Expectedly, earlier projected pressure on short-end interest rates is likely to be moderated by reduced inflationary pressures amid ample market liquidity,’ analysts at NCBA Investment Bank said in their latest weekly fixed income report.

In the last MPC meeting on June 10, the CBK kept the base rate unchanged at 8.75 percent, saying it needed to take stock of the evolving situation in Iran, in line with similar cautious stances by central banks in developed markets.

CBK Governor Kamau Thugge later said that the apex bank was optimistic that inflation would peak below the upper limit of its target range of five percent plus or minus 2.5 percentage points, due to an expectation of de-escalation of the conflict in the Middle East.

By opting to keep its base rate unchanged, the CBK also considered the fact that the current spike in inflation is primarily driven by higher prices of imported fuel and consumer goods (imported inflation) rather than underlying demand pressures in the economy.

Global oil price relief

Analysts at Sterling Capital have backed the CBK’s view in their latest monthly fixed income report, projecting a hold in the base rate in the August MPC meeting.

‘We feel that the recent easing of headline inflation to 6.4 percent, alongside anticipated global oil price relief from the US-Iran agreement, reduces the pressure for monetary tightening in the August 2026 meeting,’ said the Sterling Capital analysts.

The first test of the expectations of lower pressure on yields will come in the July 2026 Treasury bond auction, which will take place on Wednesday.

In the sale, the CBK reopened three papers with periods to maturity of between 5.8 years and 29.9 years, allowing it to gauge investor sentiment across the full breadth of the government securities yield curve.

The reopened papers include a 10-year bond first sold in May 2022, which comes with a coupon of 13.49 percent. The CBK has also reopened a 20-year bond from July 2021, which pays annual interest of 13.44 percent, and a 30-year paper first sold in March 2026 at a coupon of 12.5 percent.

The three bonds are targeting Sh70 billion, marking the start of the government’s borrowing for the 2026/2027 fiscal year in which it is seeking a net of Sh1.03 trillion from the domestic market.

Within the next eight months, Kenyans will be able to buy and sell carbon credits in a centralised marketplace, should plans to establish a carbon exchange by the end of the first quarter of 2027 be realised.

A carbon credit is a certificate that allows an organisation to buy and sell the rights to emit greenhouse gases, meaning that entities that reduce their emissions can sell their credits to those that have exceeded their prescribed limits.

The Nairobi International Financial Centre (NIFC), the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE) have set the end of March 2027 as the deadline for setting up and commencing operations of the carbon exchange.

‘Part of our mandate as the Nairobi International Financial Centre is to explore what the country can do to attract capital that targets new innovation such as the trading of carbon and virtual assets and we are seeing a lot of interest in this,” NIFC chief executive Daniel Mainda, told the Business Daily.

“One of the incentives we are lining up is a carbon exchange and we are working together with the NSE and CMA in setting it up.”

Plans to accelerate the establishment of a carbon exchange follow Kenya’s setup of the National Carbon Registry in February 2026.

This platform enables the centralised authorisation, tracking and reporting of carbon credits generated across sectors of the economy.

Delivering the 2026/27 budget speech on June 11, National Treasury Cabinet Secretary John Mbadi revealed that the government was drafting carbon credit regulations to provide a legal framework for trading the certificates.

‘Kenya is emerging as a key player in the carbon credit space leveraging its rich natural resources and strong base in renewable energy,” Mr Mbadi told the National Assembly.

“To actualise formal trading of Carbon Credits, the government is preparing Carbon Credit Regulations, which will allow both public and private sector players to benefit through trading of credits generated in Kenya and the region.”

One of the companies expected to benefit from the establishment of a locally domiciled carbon exchange is the energy-generating company KenGen, which has significant renewable energy resources through its geothermal plants.

‘Currently, a total of 6,384,398 Certified Emissions Reductions are up for sale. Kengen continued to benefit from its overall reduction of carbon emissions from the atmosphere through participation in the Clean Development Mechanism,” the company says in its latest annual report.

“Kengen has six projects registered under the Clean Development Mechanism with the potential reduction of emissions of 1.5 million tonnes of Carbon dioxide equivalent annually.”

Agricultural firm Sasini Plc has also suggested that it could generate revenue through carbon credits as it works to green its energy supply using solar and biomass technology.

‘Sasini can generate revenue through carbon credits by already reduced emissions via solar power and biomass utilisation as well as participation in Carbon Offset Programmes to attract sustainability focused buyers and investors,” the company stated in its 2024 sustainability report.

By setting up its own carbon exchange, Kenya aims to follow Egypt in establishing a local marketplace for trading carbon credits.

As of June 30, 2026, the Egyptian Carbon Exchange had registered 139,989 issued carbon credits, with each unit representing one tonne of carbon dioxide or the equivalent of other greenhouse gases verified for trading.

Local shareholders of Tatu City are mounting a last-ditch effort to reverse an alleged dilution of their stakes by their foreign business partners, even as their shares face the auctioneer’s hammer following a recent ruling by Mauritius’ highest court.

The latest move has seen Kenyan businessman Steve Mwagiru and Belgian investor Etienne Delbar, through BlackKnight Holdings Ltd, seek permission from the Supreme Court of Mauritius to institute arbitration proceedings before the London Court of International Arbitration (LCIA) on behalf of Manhattan Coffee Investment Holdings Ltd (MCIH), a company currently under liquidation.

Under Mauritius’ Insolvency Act, legal proceedings on behalf of a company in liquidation cannot start without the court’s leave.

BlackKnight Holdings is owned by a group of original investors in the Tatu City project, including Mr Mwagiru, former Central Bank of Kenya Governor Nahashon Nyagah, members of the Shah family and Mr Delbar.

Mr Delbar has separately appointed Mr Mwagiru through a power of attorney to represent him in the proceedings as he seeks to recover what he says is his diluted stake in the offshore investment structure behind Tatu City.

The applicants want the court to allow them to start arbitration in the name of MCIH to challenge what they describe as the unlawful dilution of the company’s shareholding in Cedar IV Ltd and Cedarsoc Ltd, the two Mauritian investment vehicles through which ownership interests in Tatu City and Kofinaf are held.

Setback for local shareholders

They argue that a series of transactions undertaken between 2014 and 2016 unlawfully reduced MCIH’s stake in favour of entities linked to Russian investor Stephen Jennings, the founder of Rendeavour.

“The applicants seek leave to commence proceedings on behalf of Manhattan Coffee Investment Holdings Ltd, a company in liquidation,” the November 2025 filing states.

The plea will be heard next month against a fresh setback for local shareholders after the Privy Council dismissed Mr Mwagiru’s attempt to stop the sale of MCIH’s shares by court-appointed liquidators.

The five-judge bench ruled that Mr Mwagiru, who filed the case as a director of MCIH, lacked the legal standing under Section 174 of the Insolvency Act 2009 to continue litigation on behalf of MCIH after it entered liquidation.

Only creditors and shareholders, the court said, could file on behalf of a company under liquidation.

“For these reasons, the board considers that the appellant had no standing to apply for an order under Section 174 of the IA 2009 for authority to continue the Plaint on behalf of and in the name of the Company,” the Privy Council ruled on May 16, 2026.

The decision marked another setback in a dispute that has stretched for nearly two decades and has been fought in courts and arbitration tribunals in Kenya, Mauritius and London.

The battle traces its roots to the late 2000s, when Mr Mwagiru, his mother Rosemary Wanja Mwagiru, Mr Nyagah, businessman Vimal Shah and Belgian investor Delbar teamed up to acquire more than 5,000 acres of coffee farms off Thika Road, inspired by the Kibaki administration’s Vision 2030 infrastructure drive and the construction of the Thika Superhighway.

BlackKnight Holdings is owned by a group of original investors in the Tatu City project, including Mr Mwagiru, former Central Bank of Kenya Governor Nahashon Nyagah, members of the Shah family and Mr Delbar.

Mr Delbar has separately appointed Mr Mwagiru through a power of attorney to represent him in the proceedings as he seeks to recover what he says is his diluted stake in the offshore investment structure behind Tatu City.

The applicants want the court to allow them to start arbitration in the name of MCIH to challenge what they describe as the unlawful dilution of the company’s shareholding in Cedar IV Ltd and Cedarsoc Ltd, the two Mauritian investment vehicles through which ownership interests in Tatu City and Kofinaf are held.

Setback for local shareholders

They argue that a series of transactions undertaken between 2014 and 2016 unlawfully reduced MCIH’s stake in favour of entities linked to Russian investor Stephen Jennings, the founder of Rendeavour.

“The applicants seek leave to commence proceedings on behalf of Manhattan Coffee Investment Holdings Ltd, a company in liquidation,” the November 2025 filing states.

The plea will be heard next month against a fresh setback for local shareholders after the Privy Council dismissed Mr Mwagiru’s attempt to stop the sale of MCIH’s shares by court-appointed liquidators.

The five-judge bench ruled that Mr Mwagiru, who filed the case as a director of MCIH, lacked the legal standing under Section 174 of the Insolvency Act 2009 to continue litigation on behalf of MCIH after it entered liquidation.

Only creditors and shareholders, the court said, could file on behalf of a company under liquidation.

“For these reasons, the board considers that the appellant had no standing to apply for an order under Section 174 of the IA 2009 for authority to continue the Plaint on behalf of and in the name of the Company,” the Privy Council ruled on May 16, 2026.

The decision marked another setback in a dispute that has stretched for nearly two decades and has been fought in courts and arbitration tribunals in Kenya, Mauritius and London.

The battle traces its roots to the late 2000s, when Mr Mwagiru, his mother Rosemary Wanja Mwagiru, Mr Nyagah, businessman Vimal Shah and Belgian investor Delbar teamed up to acquire more than 5,000 acres of coffee farms off Thika Road, inspired by the Kibaki administration’s Vision 2030 infrastructure drive and the construction of the Thika Superhighway.

This week, Africa marks African Anti-Corruption Day, commemorating the adoption of the African Union Convention on Preventing and Combating Corruption. It is a call for integrity, accountability and ethical governance. For Kenya, however, it should be less a celebration than a moment of reckoning.

The 2024 National Ethics and Corruption Survey paints a troubling picture. Bribery remains deeply embedded in everyday life, with citizens routinely paying to access public services. While average bribe amounts have fallen, corruption remains pervasive, eroding trust in institutions and undermining justice.

The problem extends far beyond petty bribery. Inflated procurement deals, ghost projects, nepotism and elite cartels continue to drain public resources. Kenya loses an estimated Sh608 billion annually to graft-about seven per cent of GDP. That money could transform public services, create jobs and improve millions of lives. As the World Bank warns, corruption remains one of the greatest barriers to reducing poverty and achieving shared prosperity.

High-profile corruption cases

Successive governments have left behind their own scandals, from Goldenberg and Anglo Leasing to the NYS scandals, Arror and Kimwarer dams, and more recently the fake fertiliser saga and the stalled KNH oxygen plant. The names change, but the pattern remains. Corruption persists because it has become normalised, from small acts of dishonesty to large-scale theft of public funds.

The consequences are severe. Public confidence in government continues to decline, while many high-profile corruption cases collapse because of weak investigations, political interference or compromised evidence. Justice cannot deter corruption if it is perceived to be for sale.

Kenya urgently needs to depoliticise the anti-corruption fight. Independent institutions must be empowered, not manipulated, while the Judiciary and investigative agencies must pursue cases professionally and without favour. Politicians should stop dismissing every prosecution involving their allies as a political witch-hunt.

Nurture ethical leadership

Technology, investigative journalism and public oversight also have an essential role in exposing corruption and tracking public spending. Countries such as Singapore, Hong Kong and South Korea demonstrate that strong institutions, transparent systems and sustained political commitment can dramatically reduce graft.

Ultimately, however, laws alone will not solve the problem. Kenya must rebuild a culture that rewards integrity and rejects dishonest wealth. Schools, universities, families and places of worship should nurture ethical leadership, while young people must lead the demand for accountability rather than become participants in patronage.

Corruption steals opportunities, weakens institutions and mortgages the nation’s future. Kenya must choose action over rhetoric, integrity over impunity, and courage over silence.

Kenya has introduced new vehicle inspection rules that will require millions of privately owned vehicles to undergo routine roadworthiness tests for the first time.

The reforms are aimed at removing mechanically defective vehicles from the roads by ensuring they remain mechanically fit.

While the regulations were initially gazetted to take effect this month, the National Transport and Safety Authority (NTSA) has indicated that mandatory inspections for private vehicles will be rolled out at a later date.

Why is NTSA changing Kenya’s vehicle inspection rules?

The government says the new rules are intended to reduce road crashes caused by mechanical failures, which continue to contribute to accidents alongside speeding, dangerous driving and human error.

For years, privately owned vehicles have operated without any requirement for periodic safety inspections after registration, meaning some remain on the roads despite developing faults that could endanger motorists and pedestrians.

The reforms are, thus designed to identify safety defects early, encourage regular vehicle maintenance, and ensure only roadworthy vehicles continue using public roads.

Will every private vehicle now be inspected every year?

Eventually, yes, but not immediately.

Under the new regulations, every privately owned vehicle becomes eligible for annual inspection once it is more than four years old from its recorded date of manufacture, replacing the previous system where most private cars were never subjected to routine inspections.

“Each motor vehicle, whether privately owned or owned by a government entity, once in each year, that is older than four years from the recorded date of manufacture, shall be subjected to an inspection test,” the new rules state.

The NTSA has, however, communicated that enforcement against private motorists has been deferred, meaning owners will only be required to begin annual inspections once the authority officially announces the start date.

What exactly will inspectors check on your vehicle?

The inspection is intended to answer the one question on whether the vehicle remains safe to continue sharing the road with other motorists, passengers and pedestrians.

Inspectors examine components that directly affect safety, including braking systems, steering, suspension, tyres, and lighting.

Others are mirrors, seat belts, windscreens, chassis condition, exhaust emissions and other critical mechanical systems. Vehicles that have been extensively damaged in accidents or significantly modified through engine changes, alterations to their dimensions or other structural adjustments must also undergo inspection before returning to the road.

How much will the inspection cost, and who is supposed to pay?

The cost will be met by the vehicle owner as part of the responsibility of keeping a vehicle roadworthy.

For most private vehicles, motorists will pay a total of Sh2,000, comprising a Sh1,000 booking fee payable through NTSA and Sh1,000 inspection charge at the checking centre,

Motorcycles and three-wheelers, on the other hand, will attract lower charges at Sh200 for the booking fee and Sh300 inspection fee.

Motorists whose vehicles fail inspection but complete repairs within 14 days will be allowed one free re-inspection at the same centre, after which fresh charges become applicable.

What happens if your vehicle fails the inspection?

A failed vehicle on inspection does not automatically lose its registration, but it cannot continue operating normally until the identified defects are repaired.

Inspectors will issue a defect report highlighting the specific faults requiring correction before another check is conducted to confirm that the vehicle is roadworthy.

The regulations only permit such a vehicle to be driven to a repair garage, while commercial vehicles that fail inspection cannot continue carrying passengers or transporting goods until they pass another check.

The rules also introduce new measures for severely damaged vehicles, allowing those considered beyond repair after serious accidents, floods or fires to be permanently removed from Kenya’s vehicle register.

Can private garages inspect vehicles, or must you go to NTSA?

Regulations allow private investors to set up licensed inspection centres as part of efforts to expand capacity and reduce congestion at government facilities.

The private centres will operate under NTSA supervision and will be required to meet the same technical standards as government inspection stations before receiving approval.

‘A person who wishes to be appointed as an inspector for the purposes of these rules shall apply to the Authority in writing,’ the rules read.

‘An inspector’s licence shall be valid for a period of one year from the date of issuance and shall be renewed in accordance with the applicable sub rules.’

What penalties do motorists risk for ignoring the inspection rules?

Once enforcement begins, motorists who fail to comply risk both administrative and criminal consequences.

Anyone who operates a vehicle requiring inspection without a valid inspection certificate, uses an inspection sticker belonging to another vehicle or interferes with inspection records commits an offence.

Those found guilty risk a fine of up to Sh20,000, imprisonment for up to six months, or both, while every vehicle that successfully passes inspection must display a valid inspection sticker to make compliance easy for enforcement officers to verify during roadside checks.

I have travelled the road from Kiganjo in Nyeri County to Nairobi, many times. At first, I was in secondary school. Afterwards, it was visiting relatives in Othaya, during which trips we would usually turn off towards Mukurweini, soon after Karatina town. Later, and more frequently, while serving as governor of Laikipia.

The road alignment has straightened (Thika-Kenol-Makutano) since I first travelled on it, and improved to a four-lane dual carriageway, now covering the entire length from Marua. The section between Thika and Nairobi is, of course, a much wider highway with four lanes on either side, and six in some sections. Towns along the highway have grown, except Kiganjo which gave way to Chaka.

The traffic has increased in my guestimate, by a factor of at least 10 times. One on-line account says 150 percent growth in the last 20 years! And everywhere along the highway, many food and accommodation facilities have come up. Two new towns – Makutano and Kenol – have grown quite quickly, as have settlements at Weteithie, Kahawa Sukari, Kahawa Wendani, and Thome.

Travelling to the city from Nanyuki last Monday, it stuck me. The visible signs of middle classness all along the route. But it is not just on this route. In Nairobi itself, in Mombasa, Nakuru and Eldoret (now cities), in Mandera, Wajir, and Namanga.

It is all over and yet, many citizens feel left behind.

Seeking explanations, I looked at household budgets for insights on real incomes. The Kenya National Bureau of Statistics (KNBS) categorises urban households into three income tiers based on monthly spending.

Official unemployment rate

The lower income spend Sh23,670 or less per month, mainly (65 percent) on food. They are heavily exposed to commodity price spikes and have zero room for savings.

The middle income spend between Sh23,671 and Sh199,999 per month, often relying on digital loans or saccos to pay school fees and rent. Only 15 percent are able to save regularly, leaving the rest highly vulnerable to minor financial emergencies.

The upper income spend Sh200,000 or more per month. They possess disposable income for investments, private insurance, and asset accumulation. They are thus insulated from daily economic shocks.

The ‘informal’ economy dominates employment. Out of the 21.6 million working population, 18.1 million (83.8 percent) are in it, compared to only 3.3 million in the formal sector. However, the latter shoulder the national tax burden, because the informal economy operates outside structured taxation.

The official unemployment rate, (five percent currently) is criticised for masking under-employment because it classifies anyone generating survival income – from boda boda riders, mama mbogas, or digital gig workers as employed. But there is nothing informal about the more than Sh50 trillion moving through mobile platforms annually – is it time to drop the tag?

Consumer purchasing power

Inflation is the big enemy of improving real incomes. It is driven largely by three primary categories. Transport; food and non-alcoholic beverages; and housing, water, electricity and gas account for over 57 percent of total household spending weights. Food includes cooking oil, sifted maize flour, loose maize grains, and vegetables such as Sukuma wiki and cabbages.

Historically, real per capita income was mostly stagnant or declining in the 1980s and 90s. Economic growth was insufficient. It dropped from about 7.2 percent in the 1970s to 4.2 percent in the 1980s and just over two percent in the 1990s. This was below the country’s population growth rate. As a result, living standards dropped or remained flat.

Starting in 2003, the economy underwent a notable revival. Real GDP growth accelerated – sustained, sometimes volatile, growth. Services, transport, and manufacturing drove consistent increases in real per capita income, averaging 2-4 percent annually. This significantly boosted consumer purchasing power, lifting a portion of the population out of poverty before to the global health crisis struck.

The Covid-19 disruptions reversed real per capita growth sharply, contracting it by -0.27 percent in 2019/20. The economy rebounded strongly in 2021 with an overall GDP growth of 7.59 percent, and has continued to grow since. Real per capita income has made modest gains. So, what is wrong?

First, inequality. Averages mask extremes. Income has increased the most for the top earners, but only very modestly at the bottom, with regional disparities. Second, the gains from recovery have not yet covered previous declines.

But, me thinks there is reason to hope: per capita real income has increased from $102 in 1960, $402 in 2002, to $2,363 now.

Satellite Internet firm Starlink has suspended new customer sign-ups in seven counties including Nairobi, Kiambu, Mombasa, and Machakos after surging demand exhausted available network capacity, signalling mounting pressure on its rapidly expanding connectivity service.

Others with overstretched capacity include Murang’a, Kirinyaga and Kwale counties.

A Business Daily spot check on the Elon Musk-owned company’s website on Tuesday showed prospective residential customers in the seven counties can no longer place orders and are instead redirected to a waiting list.

The restrictions point to growing demand for Starlink’s satellite broadband less than three years after its Kenyan launch, underscoring the pace at which the provider has gained ground against traditional players.

“Starlink service is currently at capacity in your area. However, the good news is you can still place a deposit now to reserve your spot on the waitlist and receive a notification as soon as service becomes available again,” reads a message displayed on purchase attempts.

“Please note that we cannot provide an estimated timeframe for service availability, but our teams are working as quickly as possible to add more capacity to the constellation so we can continue to expand coverage for more customers around the world.”

Starlink launched commercial operations in Kenya in July 2023, becoming the country’s first low-earth orbit satellite broadband provider and introducing direct competition to terrestrial fibre and wireless internet operators.

Since then, the company has recorded one of the fastest subscriber growth rates in Kenya’s internet market, driven by aggressive price cuts and cheaper equipment financing options.

Latest data from the Communications Authority of Kenya (CA) shows Starlink had 24,999 subscriptions by the end of March this year, giving it a 0.9 percent share of Kenya’s fixed internet market.

The subscriber base has more than tripled from 8,063 customers recorded in June 2024 when the company first broke into the country’s list of internet service providers.

The rapid growth has come despite sustained complaints from established operators that satellite providers enjoy regulatory advantages because they do not invest heavily in terrestrial infrastructure.

Starlink’s expansion has been fuelled by strong demand from households, businesses and institutions seeking faster internet speeds, particularly in locations where fibre connections remain unavailable or unreliable.

Its satellite-based model bypasses conventional fibre cables and mobile towers by connecting customers directly through orbiting satellites using rooftop receiving terminals.

The technology has proved particularly attractive in rural areas, construction sites, farms, tourism facilities and remote institutions where extending fibre infrastructure remains commercially unattractive.

Urban uptake has also accelerated as customers increasingly seek alternative providers amid growing dependence on stable internet for remote work, streaming and online businesses.

Starlink has steadily lowered entry barriers since arriving in Kenya, by slashing equipment prices and introducing lower-cost subscription packages aimed at attracting more households.

The company initially required customers to spend about Sh100,000 for installation, including Sh89,000 for the hardware kit, placing the service beyond the reach of most households.

It later cut the hardware price to Sh49,900 before introducing rental options that eliminated the need for customers to purchase the equipment outright.

Customers can now rent the installation kit for Sh1,950 monthly instead of paying the full purchase price while separately subscribing to internet service packages.

The provider also introduced a 50-gigabyte monthly package priced at Sh1,300, significantly undercutting comparable offers from traditional mobile and fixed internet operators.

The aggressive pricing strategy has intensified competition in Kenya’s broadband market, forcing established providers to respond with promotional offers and revised internet packages.

The latest capacity constraints suggest subscriber growth is now outpacing available satellite resources serving parts of Kenya despite continued expansion of the global Starlink constellation.

Unlike fibre operators that expand capacity by laying additional cables, satellite providers depend on available bandwidth from orbiting satellites serving specific geographical regions.

As customer numbers rise within a particular coverage area, operators must deploy additional satellites or reallocate network resources before accepting more users.

The Capital Markets Authority (CMA) has licensed more players in the investment advisory and management field as a rise in retail investors attracts more firms seeking fees.

The regulator has licensed the new firms and sub-funds across asset management, investment advisory, real estate investment trust (REIT) management, coffee brokerage and digital intermediation.

“The entry and expansion of these intermediaries will contribute to increased market depth, improved product diversity, enhanced investor choice and strengthened confidence in Kenya’s capital markets,’ said CMA’s chief executive officer, Wyckliffe Shamiah.

Among the newly licensed market intermediaries include Finaltus Limited, which received an investment adviser licence to provide corporate finance, transaction advisory and investment advisory services, with a focus on ESG investments and cross-border transactions.

Istithmaar Lulu Maknoon Limited (ILM) was licensed as a REIT manager, introducing Shariah-compliant real estate investment products into the market.

The CMA also licensed Saffron Coffee Marketers Limited as a coffee broker, supporting ongoing sector reforms by providing brokerage services to farmers.

Frictionless Enterprises Limited, trading as Power, has secured an Intermediary Service Platform Provider licence.

The approval enables the company to formalise its digital savings platform, allowing users to invest seamlessly in money market funds managed by CMA-regulated fund managers through payroll-integrated technology.

Power had previously participated in the CMA Regulatory Sandbox before graduating to full licensing.

The licensing drive extended to the asset management industry, where CMA approved three new fund managers to expand professional investment management capacity.

ADAR Asset Management Limited plans to launch closed-end collective investment schemes providing Kenyan investors access to alternative global investment opportunities, beginning with real estate-linked credit products.

Entrust Advisory Limited, previously licensed as an investment adviser, was upgraded to fund manager status, allowing it to offer a different investment management solution.

Everstrong Asset Management Limited also secured a fund manager licence and intends to focus on infrastructure, private equity, energy, real estate and other alternative investments across Kenya and the wider East African region.

The CMA also approved the registration of two new umbrella unit trust schemes alongside several new investment sub-funds.

Cinemark Investment Bank Limited received approval to establish the Cinemark Unit Trust Fund comprising seven sub-funds covering Kenya shilling and US dollar money market, fixed income and multi-asset investment strategies.

Karsis Asset Managers Limited was also authorised to establish the Karsis Unit Trust Scheme with twelve sub-funds spanning money market, fixed income, multi-asset and private debt strategies offered in Kenya shillings, US dollars, euros and sterling pounds.

The latest approvals form part of CMA’s broader strategy to promote innovation, attract new investment products and expand access to regulated financial services across retail, institutional, corporate, diaspora and high-net-worth investor segments.

State-owned Kenya Railways Corporation’s net losses grew by Sh477 million to Sh28.16 billion in the year ended June 2025, clouding the performance of the standard gauge railway, which posted its first surplus since launch.

Latest disclosures by KRC show its net loss had grown from Sh27.68 billion the year before. The firm has not turned a profit in over a decade.

The SGR, its top cash cow, earned enough revenues to cover its operating costs for the first time since its commissioning in 2017, marking a major turning point for the infrastructure project, but not enough to lift its operator from the red.

During the period, SGR earned Sh18.5 billion in revenues, up from Sh16.8 billion a year earlier, while its operating costs rose only marginally by Sh290 million, to Sh18.3 billion.

The surge in revenues helped the modern railway line record a surplus of Sh181.7 million, turning around a loss of Sh1.18 billion the previous year, helped by increased passengers and freight services.

Passenger numbers

‘This performance was buoyed by increased volumes in freight, enhanced earnings from freight and passenger services and efficient utilisation of assets and rolling stock,’ KRC said in a disclosure.

The metre gauge railway (MGR), which has traditionally dominated KRC’s passenger numbers and revenues generated, continued to make losses as fewer Kenyans used it both for long-haul and commuter routes.

In the year to June 2025, MGR revenues dropped to Sh2.2 billion from Sh2.3 billion a year earlier, while operating costs declined slightly to Sh4.33 billion from Sh4.36 billion the previous year. This means its loss remained stable at about Sh2.1 billion.

KRC’s other business units -the Railways Training Institute and Landed Assets- contributed Sh252.6 million and Sh2.09 billion in revenues respectively, supporting a larger increase in its overall sales.

Overall, KRC’s revenues rose by Sh6.6 billion to Sh30.3 billion, from Sh23.7 billion, supplemented by grants from the exchequer, which rose from Sh2.9 billion to Sh7.7 billion.

Growth of SGR revenues

Its operating expenses during the period rose slightly by Sh659 million to Sh46.5 billion, driven largely by depreciation of property, plant and equipment. Staff costs rose to Sh4.2 billion from Sh3.7 billion.

In the review period, KRC’s loss was mitigated by a decline in deferred income tax to Sh13 billion from Sh23.3 billion.

The corporation is now banking on the sustained growth of SGR revenues and effective rent collection on its land assets to return to profits, as these two now remain its only profitable units.

SGR has registered sustained performance in both freight and passenger numbers, indicating high prospects for growth as the State begins SGR extension to Malaba.

In the year to June, SGR ferried 2.55 million passengers, surpassing for the first time the number of travellers ferried by the MGR trains, which declined from 3 million to 2.51 million during the year.

To support its growth, KRC is investing further in SGR, with a planned extension of the line from the Syokimau terminus to the Nairobi CBD, expanding access for passengers amid a growing demand.